Court revokes approval of change in largest shareholder in YTN TV

A court on Friday ruled in favor of employees of all-news TV channel YTN over an approval by the broadcasting regulator that changed the broadcaster's biggest shareholder.

In February last year, the then Korea Communications Commission, which was abolished and reorganized as the Korea Media and Communications Commission, decided to approve the application by Eugene ENT Co. to become the largest shareholder of YTN.

The Seoul Administrative Court ruled that the regulator's decision was illegitimate because it was made with only two members of the commission's decision-making body, instead of five members eligible for quorum for voting.

The court said it was desirable for the commission to make a decision if three of the five members vote for it.

"If there are only two active members, it is structurally difficult to implement such functions, and it does not conform to the fundamental idea of a consensus-based administrative agency, which requires the presence of multiple members," the court said.

Such a situation would essentially allow the majority to handle matters on its own, while depriving the minority from participating, it said.

Under the previous Yoon Suk Yeol administration's restructuring plan, Eugene ENT acquired a 30.95 percent stake in YTN from two state-run companies, KEPCO KDN and the Korea Racing Authority, becoming the broadcaster's largest shareholder.

Against the commission's approval, YTN's employee stock ownership association filed a lawsuit with the court.

YTN's labor union welcomed the court decision, voicing hope for the new media regulator to cancel the shareholder change.

Eugene Group said it would closely review the decision and decide whether to seek an appeal.